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Safety Policies & Programs

To fulfill its commitment to the safety and satisfaction of its employees Cabo Drilling is utilizing an extensive Human Resources Plan to improve the Company’s ability to recruit, train and retain good employees. Our program focuses on:

improving health, safety and training programs and implementing one standard for the entire company

enabling employees to participate in the success of the Company with an employee stock option plan

implementing an employee relations program from the top down to establish Cabo as an employer of choice amongst its employees and within the drilling services industry.

Policy

Management at Cabo Drilling Corp. believes that the proactive and systematic identification and control of hazardous conditions, in combination with education and good engineering, can prevent accidents, property damage and lost time from occurring. Management recognizes that no one program is successful by itself, but rather a combination of programs, along with the full participation by our employees, will create the safest, most efficient environment possible. To assist in the management of risks, Cabo Drilling Corp. employs the following hazard recognition programs:

Regular Safety Meetings:Safety meetings are an important aspect of Cabo Drilling’s Environment, Safety and Health Program. Regular meetings help maintain safety awareness and ensure that all safety and health concerns are brought into the open, discussed, and resolved.

Equipment Pre-Checks: At the beginning of each shift, drill operators and equipment operators are required to perform and record pre-operational checks of critical items on drills and mobile equipment to detect any defective or worn components which could lead to injury or equipment damage. Corrective action will be taken and recorded, and a copy of the daily checks shall be sent to Operations and reviewed for trends and program adjustments.

Preventative Maintenance: As part a preventive maintenance program, critical components on drill and mobile equipment are inspected prior to leaving maintenance shops and during routine field maintenance visits conducted by maintenance staff.

Workplace Inspections: Inspections are conducted regularly to uncover potential hazards. Checklists have been developed for shops, as well as underground and surface diamond drill sites. Inspections are completed regularly, providing a systematic approach to uncovering and correcting hazards.

JHSC Inspections: Where required, Joint Health and Safety Committee (JHSC) members have a duty to designate a worker representative to be responsible for conducting workplace inspections. Joint inspections are conducted and discussed monthly.

Fitness for Work: The Company has implemented a Fitness for Work Program to strengthen its commitment to protecting employees from injury while on the job. Policies and program procedures provide a framework for dealing with illegal drug and alcohol use in the workplace. Employees with drug or alcohol abuse problems will be urged to seek assistance prior to the materialization of problems that affect job safety and performance, and will have access to a Substance Abuse Professional (SAP) and a Medical Review Officer (MRO) where required.

Operating Procedures: General operating procedures have been developed for underground and surface operations highlighting inherent risks and controls. Employees are trained in safe operating procedures.

Job Safety & Environmental Plan (JSEP): Job Safety and Environmental Plans address safety and environmental related needs and expectations of all stakeholders in each project before the project starts. By addressing safety and environmental related needs early, a thorough and coordinated approach towards on-the-job safety and pollution control can be incorporated into the drill program.

Internal Training and Development Program

Cabo Drilling Corp.’s commitment to training and employee health and safety has evolved towards the development of an internal training and development program. This program continues to mature, but the commitment that Cabo has towards health and safety can be demonstrated through Cabo’s Ontario Division, which was recognized in fiscal 2007 by the diamond drilling industry’s Eastern Safety Group and the Canadian Diamond Drillers Association with the presentation of 3 safety awards.

Program to eliminate drug and alcohol abuse
– a first in the mineral drilling sector

An area of immediate concern for all employees involved in the drilling industry is employee safety. Studies have shown regional differences exist with substance use, as well as a direct relationship between accidents and drug and alcohol use. With the assistance of CannAMM, a substance abuse service provider, Cabo Drilling Corp. has developed and is implementing a Fitness for Work Program. The program includes random and post accident and reasonable cause drug and alcholol testing.

While this policy applies specifically to all Company employees in Safety Sensitive Positions, such as surface and underground drill personnel and company truck drivers, all Cabo Drilling employees have access to Substance Abuse Counselors and a Medical Review Officer.